What will be cheaper in M'sia after GST kicks in? Here's a list
When the Goods and Services Tax (GST) hits shoppers in Malaysia in April, some items might be cheaper than they are now.
This is because GST is lower than the current sales and services tax (SST) which is currently imposed on some items, reports The Star Online.
The upcoming GST in Malaysia is set to be 6 per cent, while SST is at 10 per cent.
Items such as television sets, refrigerators, air conditioners, electric irons, hair dryers, diapers and soft drinks are expected to be cheaper.
Items that were previously not subjected to the SST will see their prices increase.
Cosmetics and electronics such as iPads, mobile phones and watches are set to see an increase in price.
However GST will not be imposed on items classified as "essential items".
These include bread, cooking oil, eggs and meats such as beef, lamb and chicken.
Examples of items that will undergo price changes. Photo: The Star Online.
“From a tax administrator’s point of view, it is easier if everything got taxed because it would make things simpler to implement,” Customs Department director of GST Datuk Subromaniam Tholasy.
“But the Government doesn’t wish to tax so much and it wants to make sure that the low income group will not be unnecessarily burdened.
“So, we have to strike a balance between revenue and providing a social safety net.” he added.
The Malaysian Customs Department has released a book which extensively details which items are taxable and which are exempted.
Source: The Star Online.